What is PPF Account or Public Provident Fund Account ? PPF Account is abbreviated as in Public Provident Fund Account, which was initially launched by Govt of India back in 1968, so next time when some asks when was ppf started in India ? Answer them it was in 1968, it was done by the government to mobilize small savings so that the end user gets a tax benefit with reasonable interest at the end of 15 years. This becomes an asset to the user as a pension amount or helpful for a marriage purpose or for purchasing a house. PPF Account by large provides a better safety as compared to any other plan in the country. Hence people prefer opening a ppf account as compared to any other savings plan if they requirement is long term savings. But this is one plan where in ppf interest rate tax free and also provides ppf withdrawal tax free. Many people who opened PPF Account have asked me Is Maturity Amount of PPF Taxable ? The answer is No. Further, it also acts as a catalyst for a personal savings of a user and provides support at the right time. Investment in PPF Account should follow a minimum duration of 15 years and with a flexible investment amount of maximum 1,50,000 INR in any Financial Year followed by a minimum investment in ppf account per year as 500 INR. The amount of investment can vary every month but ppf account maximum limit per year should not exceed 1,50,000 INR. So ideally every month max of 12,500 INR can be deposited and minimum of 41 INR can remitted into PPF Account. The loan facility from ppf account can be availed but between 3rd year ending to 6th year ending but its a max of 25% of balance from the 1st year to 4th year. But keep in mind that Public Provident Fund Account is one of the best tax savings instrument in the country for citizens of India. Public Provident Fund Account can be opened in Post Office, Nationalized Banks and also in Private Banks

Interest rate : 8.7%

Duration of scheme : 15 years

Min. deposit amount (per year) : 500

Max. deposit amount (per year) : 1,50,000

Number of installments every year : 1 (Min) to 12 (Max)

Number of accounts one can open : Only One

Lock-in period : 15 years (partial withdrawals can be made from the sixth year)

Extension of PPF Account : After the maturity period (15 years), it can be extended for a period of 5 years